Inflation, Operation Research

 Inflation

Inflation is a general increase in the price of goods and services. The inflation rate, as measured by the Consumer Price Index (CPI), was 9.9% in 20x2-x3 and is expected to be 8% in 20x3-x4. This does not mean that prices will be lower in 1993-94. It merely means that the general increase in prices will be lower. An example will clarify the point.

The prices of certain items are included in calculating the CPI. If a given quantity of these items cost Rs.10,000 in the beginning of 20x2-x3, then at the end of 20x2-x3 they would cost Rs.10,990 which is 9.9% more. Further at the end of 20x3-x4 they will be expected to cost Rs.11,869 which is 8% more than the cost at the beginning of the year. Clearly the prices have not fallen, only the rate of increase has slowed down.

Figure 1: Inflation as Reflected by the Cost of Items Worth Rs.10,000
on 1st April 1992

1831_inflation.png

         1st April 20x2  1st April 20x3 1st April 20x4

Posted Date: 9/13/2012 9:18:16 AM | Location : United States







Related Discussions:- Inflation, Assignment Help, Ask Question on Inflation, Get Answer, Expert's Help, Inflation Discussions

Write discussion on Inflation
Your posts are moderated
Related Questions
A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

a paper mill prodecs two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper in

Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 4 X1+ X2 2 X1, X2 0on..

factors affecting tha transportation cost

Background: The use of "Tablet Personal Computers" such as HP's TouchPad and Apple's iPad has been increasing over the past several years. Task: Using a web browser and quality,

scope of operation research in insutry and defence

1)  Provide a description of the required factors of production, grouping them according to whether the factors of production are a) Fixed and hence unlikely to vary much accord

Introduction to Probability Distribution By  theoretical distribution we mean  a frequency distribution  which  is obtained  in relation to a random  variable by some  mathem

Reference Books If an article  in a reference  books has more  than one  author use the  same  format  for  authors  given for  books above. a. Authors Known :Authors last

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i